Renewable Energy Index Switzerland (REIS)

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Renewable Energy Index Switzerland (REIS)

Economic Activity in the Renewable Energy and Energy Efficiency Sectors

4th Quarter 2010

Index at end of Q4 2010: 54.3 index points

Change on previous quarter:–4.0 index points (rounded)



Change on same quarter in previous year:–

Renewable Energy Index Switzerland Performance of the REIS

30 35 40 45 50 55 60 65 70

Q1 2010 Q2 2010 Q3 2010 Q4 2010

Sales rose less quickly

The REIS–Renewable Energy Index Switzerland–reached a level of 54.3 points in the fourth quarter of 2010. This means that the index is still above the growth threshold of 50 percent, and it continues to indicate positive economic momentum in the renewable energy and energy efficiency sector. As compared to the previous quarter, however, the index fell once again, suggesting a slowdown in growth. Of the five components that make up the REIS, the Sales, Order Backlog and Employment subindices managed to stay above 50 points in the fourth quarter, while Supplier Deliveries and Inventories closed under this mark.

The Sales component fell by 6 points to an index level of 60.4, indicating that sales rose less quickly in the fourth quarter than in the third. The Order Backlog subindex closed 4 points down at 53.1. This shows that the order backlog has increased, but to a lesser extent than in the previous quarter. Supplier Deliveries came in below the growth threshold at 48 points, which signals a fall in capacity utilization. The Inventories subindex remains slightly below the 50-point mark–a sign that companies are continuing to exercise restraint on the purchasing side. Employment fell by three points to 55.6. Employment figures clearly rose in the fourth quarter of 2010, but at a reduced rate. Compared with the third quarter, the Exports subindex, which is not included in the REIS, dropped back below 50 points, suggesting a fall-off in export activity.

Subindices

higher (%) same (%) lower (%) net Index +/-

Sales 41 38 21 21 60.4 -6

Order Backlog 32 42 26 6 53.1 -4

Supplier Deliveries 11 75 14 -4 48.0 -5

Inventories 15 69 16 -1 49.3 0

Employment 20 72 9 11 55.6 -3

Exports 4 87 9 -4 47.8 -5

This table summarizes the results of the latest survey. For each subindex, it shows the percentage of responses that were higher, the same, or lower in relation to the previous month. The level attained by each subindex is also shown. The level for a subindex is obtained by adding the percentage of "higher"

responses to half the percentage of "same" responses. The REIS corresponds to the weighted average of the subindices (weightings are shown in parentheses): Sales (0.25), Order Backlog (0.30), Supplier Deliveries (0.15), Purchasing Inventories (0.10) and Employment (0.20). If the level of the REIS or of one of its subindices is above the 50.0 point mark, this should be interpreted as an increase; a figure below 50.0 points indicates a decrease.

REIS

2010 Q1 58.7

2010 Q2 62.6

2010 Q3 58.2

2010 Q4 54.3

The Renewable Energy Index Switzerland (REIS) is published each quarter by Credit Suisse in cooperation with the Swiss Agency for Renewable Energy and Energy Efficiency (A EE). This indicator is based on a survey of companies in the sustainable energy solutions sector (renewable energies and energy efficiency). The data is collected and analyzed in accordance with the standards of the International Federation of Purchasing and Materials Management. The A EE's remit is to conduct the survey, and Credit Suisse is responsible for analysis and publication. The REIS directly reflects the course of business and performance in the sustainable energy solutions sector. Five sub-indices and additional information provide a more detailed view of this picture. Launched in the first quarter of 2010, the REIS survey is thus a valuable addition to the basic data sources for this sector.

Contacts:

Niklaus Vontobel

Credit Suisse Economic Research, Uetlibergstrasse 231, 8070 Zürich

Tel. + 41 44 332 09 73, Fax + 41 44 333 56 79 niklaus.vontobel@credit-suisse.com

Patrick Marty

A EE Swiss Agency for Renewable Energy Falkenplatz 11, P.O. Box, 3001 Berne Tel. +41 31 301 89 62 patrick.marty@aee.ch, www.aee.ch

The Renewable Energy Index Switzerland appears on a quarterly basis. Free subscriptions are available from Credit Suisse. To subscribe, please send your e-mail address to:

reis.economicresearch@credit-suisse.com

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Credit Suisse/A EE 2

Renewable Energy Index Switzerland (REIS)

Economic Activity in the Renewable Energy and Energy Efficiency Sectors

4th Quarter 2010

Sales

higher (%) same (%) lower (%) net Index

2010 Q1 34 46 20 13 56.6

Q2 48 37 15 33 66.5

Q3 45 42 12 33 66.5

Q4 41 38 21 21 60.4

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The Sales component fell by 6 points quarter-on-quarter to 60.4. This index level indicates that sales rose less quickly in the fourth quarter than in the third.

Order Backlog

höher (%) gleich (%) tiefer (%) netto Index

2010 Q1 42 42 16 26 63.2

Q2 47 40 13 35 67.4

Q3 38 39 24 14 56.8

Q4 32 42 26 6 53.1

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The Order Backlog subindex closed 4 points down on the previous quarter at 53.1. Although this component has weakened, it is still above the growth threshold of 50 points. Order backlogs have clearly increased again, but to a lesser extent than in the previous quarter.

Supplier Deliveries

2010 Q1 19 71 10 8 54.2

Q2 21 74 6 15 57.5

Q3 15 77 8 6 53.2

Q4 11 75 14 -4 48.0

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The Supplier Deliveries subindex was down 5 points at 48. This indicates that supplier delivery lead times have shortened, which is probably due to reduced capacity utilization. Falling capacity utilization usually goes hand-in-hand with shorter delivery periods.

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Renewable Energy Index Switzerland (REIS)

Economic Activity in the Renewable Energy and Energy Efficiency Sectors

4th Quarter 2010

Inventories

höher (%) gleich (%) tiefer (%) netto Index

2010 Q1 16 71 14 2 51.0

Q2 11 78 11 0 50.0

Q3 19 62 20 -1 49.4

Q4 15 69 16 -1 49.3

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The "Inventories of purchased raw materials, semi-finished products and components for production" subindex is again below the 50-point threshold, although still by only a small margin. This is a sign that companies again exercised restraint with their purchasing in the fourth quarter.

Employment

2010 Q1 30 64 6 24 61.9

Q2 27 67 6 21 60.4

Q3 26 65 9 16 58.2

Q4 20 72 9 11 55.6

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The Employment subindex fell again and now stands at 55.5 points. This index level signals that the sector clearly remained active on the employment front in the fourth quarter, but that the pace of growth has slackened once again.

Exports

2010 Q1 11 72 17 -5 47.3

Q2 12 74 15 -3 48.4

Q3 17 71 12 5 52.4

Q4 4 87 9 -4 47.8

20 30 40 50 60 70 80

Q1 2010 Q2 2010 Q3 2010 Q4 2010

The Exports subindex, which is not included in the REIS, fell back under the 50-point growth threshold in the fourth quarter. This development indicates that export activity was weaker in the fourth quarter than in the third.

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The Swiss Agency for Renewable Energy and Energy Efficiency (A EE) represents the interests of companies and associations in the renewable energy and energy efficiency sectors. At federal, cantonal and municipal level and outside of Switzerland, the Agency advocates key energy policy decisions that will benefit the climate, business and industry, and each individual. The A EE represents the interests of companies that create the basis for sustainable living and economic activity by developing effective and innovative energy solutions. Its objectives are to inform the general public and key decision- makers, to raise awareness about sustainable energy policies, and to play an active part in developing the overall framework of economic and policy conditions. More information about the A EE is available at: www.aee.ch.

Disclaimer

The document was produced by Credit Suisse and the Swiss Agency for Renewable Energy and Energy Efficiency (A EE). It does not constitute the results of financial analysis. For this reason, the Directives on the Independence of Financial Research issued by the Swiss Bankers Association (SBA) are not applicable to this document.

This publication is for information purposes only. The views expressed herein are those of the A EE and Credit Suisse at the time of going to print (we reserve the right to make amendments). The information and analysis contained herein have been gathered from sources that are considered to be reliable. However, Credit Suisse and the A EE make no representation as to their reliability or completeness, and do not accept liability for losses arising from the use of this information.

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